KOSPI Barely Holds 2500... KOSDAQ Ends with a Rebound

Foreigners Switch to 'Buy' Mode in KOSPI in the Afternoon

[Image source=Yonhap News]

The KOSPI fell below 2500 for the first time in three trading days. Contrary to market expectations of a rate cut within the year, the index started lower following hawkish remarks from Jerome Powell, Chair of the Federal Reserve (Fed), stating that "there will be no rate cut this year." However, it ended slightly down as foreign buying pressure flowed in. The KOSDAQ successfully rebounded, supported by individual investors' buying momentum.

On the 4th, the KOSPI closed at 2500.94, down 0.02% (0.46 points) from the previous day. The index opened at 2494.82, down 0.26% (6.58 points), but trimmed losses in the afternoon.

In the morning, both foreigners and institutions were net sellers, but foreigners turned to net buyers in the afternoon. Individuals and foreigners net purchased 227.6 billion KRW and 39.4 billion KRW, respectively. Institutions alone net sold 268.8 billion KRW.

Among the top 10 market capitalization stocks, most closed lower. SK Hynix -1.22%, Hyundai Motor -0.90%, Kia -0.69%, LG Energy Solution -0.53%, Samsung Electronics -0.46%, POSCO Holdings -0.26%. On the other hand, Samsung Biologics +2.84%, NAVER +1.82%, LG Chem +0.69% rose. Samsung SDI ended flat.

The KOSDAQ closed at 845.06, up 0.22% (1.88 points) from the previous day, marking a successful rebound. It opened at 842.13, down 0.12% (1.05 points), but turned positive in the afternoon. Individuals drove the index higher, net buying 189.9 billion KRW alone. However, foreigners and institutions net sold 134.3 billion KRW and 40.4 billion KRW, respectively.

Most of the top 10 market capitalization stocks on the KOSDAQ were on the rise. Celltrion Healthcare +4.90%, Celltrion Pharm +4.19%, Pearl Abyss +2.17%, EcoPro +2.09%, HLB +1.89%, Kakao Games +0.63%. L&F and Pearl Abyss ended flat.

Lee Kyung-min, a researcher at Daishin Securities, analyzed, "Concerns over the US economic downturn coexist with expectations for rate cuts, causing US bond yields to fall and the dollar index to drop to around 100.8 points." He added, "The won-dollar exchange rate plunged 14 won due to dollar weakness," and explained, "In addition, foreigners showed a shift to net buying in the afternoon, strengthening the market's downside resilience."

This content was produced with the assistance of AI translation services.